Waratah Coal Inc. Confirms Hard Coking Coal at Nymboida Project

-- Coal quality at Nymboida is premium hard coking coal, post washing
swell of CSN 9.
-- Enhanced potential for an underground coking coal resource supports
further evaluation
-- Seven open holes and two partially cored holes were drilled to test
potential of the Farquhar's Creek coal seam
-- Farquhar's Creek coal seam intersected in all but one hole, up-dip of
the outcrop
-- Farquhar's Creek coal seam thickness ranges from 0.95m to 1.1m over an
area 1.5km by 2.5km

Waratah Coal Inc. ("Waratah") (TSX-V: WCI) is pleased to announce positive
results of the initial drilling program and coal quality analysis at its
Nymboida Project. The enhanced potential for an underground coking coal
mine at its Nymboida Project supports Waratah's continuing evaluation of
the project.

Based on the features of the Farquhar's Creek seam and the strata hosting
it, the Farquhar's Creek seam has the potential to develop to an
underground plow operation. Modern longwall plow faces are being installed
in China, USA, Russia, Czech Republic and Kazakhstan to exploit coal seams
down to 0.65m thickness.

The Nymboida Project is located 29km south west of the regional town of
Grafton in NSW Australia. The Nymboida Coal Measures are located in the
Clarence Moreton Basin. The coal measures are early to mid Triassic Bowen
Basin equivalents representing a southern extension of the South East
Queensland Esk Trough system and consist of carbonaceous shales,
conglomerates, sandstones and coal seams. An underground coal mine operated
at the site until 1979, supplying coal for the local power station.

Waratah Coal obtained the exploration rights over the area with a view to
the potential for a small scale underground mine development based on
potential coking coal quality.

The results prove the coal seams extend to the south of the closed mine
over an area 1.5km by 2.5km. Coal quality results were obtained from two
partially cored holes. The results are tabulated below.

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Coal quality testing was conducted by ACIRL (Australian Coal Industry
Research Laboratories) an approved NATA (National Association of Testing
Authorities) facility, all tests have been conducted to the appropriate
Australian Standard (AS). All Nymboida holes were geophysically logged by
Geoscience Australia Pty Ltd using density, gamma and calliper tools.

The company will now commit substantial funding to the testing of the
resource potential of the Farquhar's Creek seam to the East and North of
the historic mine in order to further extend the resource potential. A
network of access tracks will be prepared which allows for testing of the
coal bearing strata on a regional scale, and a substantial drilling program
will follow.

"The immediate focus of this program was to prove that the seam extended
beyond the area of the previous mining operation and to confirm the coking
coal properties we suspected," said Peter Lynch, President and CEO of
Waratah Coal Inc. "We now want to step out to the north and east of the
mine and are in the hope of finding further extensions of the hard coking
quality Farquhar's Creek seam and potentially a thicker working section. In
the area of the mine the seam ranged in thickness up to 1.6m," Lynch said.

Waratah Coal's primary project of significance continues to be the Galilee
Basin in the state of Queensland. While efforts were temporarily delayed
due to the area receiving an unseasonal 10 inches of rain two drilling rigs
have returned to full operation. The focus of efforts is to complete a
coring program as part of the effort to declare an initial resource at the
project. The company has a diverse range of projects and is aiming to be
drilling at least two projects in addition to the Galilee Basin.

A map of Waratah's licences including the Nymboida Project is available on
its website. The Company encourages its shareholders and interested
investors to visit www.waratahcoal.com. The website has been designed to
provide a comprehensive overview of Waratah's current projects and the
state of development which each project is at. Shareholders and investors
are encouraged to register for email notification and distribution of
future news releases.

Mr. Peter Lynch, BE(Min), President and CEO of Waratah Coal, is the
Qualified person for the Galilee Basin Project and has approved the
contents of this news release.

About Waratah

Waratah's strategy is to build shareholder value, through acquisition,
exploration and development of coal projects in Australia. This strategy
has being developed by a synthesis of Waratah's core skills in project
evaluation, structured acquisition, exploration and project development and
operations, an area where Waratah executives have significant experience.
Seven coal projects have already been acquired, with more in application,
and drilling programs well underway at Waratah's South Alpha project and
Nymboida project. Waratah has 33.5 million shares outstanding.

On behalf of the Board of Directors,
"Peter Lynch"
President, Chief Executive Officer and Director

The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release

LEVEL 5, 60 EDWARD STREET
BRISBANE QLD 4000 AUSTRALIA

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